India does not plan to lift the ban on Chinese investment in the country anytime soon, said Chief Economic Adviser V. Anantha Nageswaran, quoted by Reuters, reports News.bg.
“This requires both sides to realize their mutual dependence and the benefits of cooperation“, he stressed during an event in Mumbai.
Asked if India was considering a change in its policy towards Chinese investment, Nageswaran noted that quick results were not expected. “Both countries are crossing the river by feeling the stones“, he commented, using a Chinese proverb for a cautious approach.
Since 2020, India has tightened control over Chinese investment after tensions between the two nuclear powers escalated. The conflict reached a peak in clashes along the Himalayan border in June 2020, when 20 Indian and 4 Chinese soldiers were killed.
Despite the complicated relationship, India has begun a dialogue with China over the growing trade deficit between the two countries. According to Nageswaran, India is among the three countries with the largest trade imbalance with China, with a trade deficit of $93–95 billion.